4 KEYS TO DIGITAL LOGISTICS TRANSFORMATION

submitted 9 months ago by raj to business

We could consider logistics digital transformation as the process of implementing specific technology and digitalization , in the entire set of processes that make up the industry, starting with the way in which logistics companies communicate with their customers, through the planning of their operations and deliveries, and of course the way they manage their internal processes. Logistics digital transformation, like digitalization in any other area or sector, has as its main objective to improve efficiency, reduce costs and increase customer satisfaction which, by the way, with the rise of online sales , has been one of the main drivers of logistics digital transformation. Customers' expectation of fast and reliable delivery has increased pressure on logistics companies who have had to adapt and provide high-quality delivery services.

Technologies applied to the logistics chain. In order to adapt to this demand, logistics companies have adopted a series of technologies and digital solutions. Some examples include: 1.- Supply chain management systems (SCM). These digital systems allow logistics companies to plan and coordinate the flow of materials and products throughout the supply chain , from suppliers to end customers, with models or types of management unthinkable without the use of software development services such as, For example: Digital twins. A digital twin is a product of logistics digital transformation and consists of a digital representation of a process or a complete facility such as a real warehouse. It serves to simulate and analyze the performance and efficiency of the process or warehouse in situations other than real ones . It allows you to make changes to inventory, changes to the location of products, or changes to workflow, to make informed decisions about how to optimize the performance and efficiency of the process or warehouse, without making physical changes. Warehouse as a service. As an alternative to owning or renting your own storage space, it is really interesting for companies that need temporary storage space or that do not have the capacity or resources to manage their own warehouse. Thanks to the digital logistics transformation , companies with excess resources in their warehouse and well digitalized can put this excess at the service of other companies , and obtain an economic return for it. VMI (Vendor Managed Inventory) is a way of managing inventory in which the supplier is responsible for maintaining the appropriate level of inventory for the client company . It requires good communication and collaboration between the client company and the supplier, since its efficiency is based on the precision and transparency that the client company maintains in the digital exchange of information about its demand and consumption pattern. 2.- Delivery tracking and tracking systems. These systems have brought a series of advantages thanks to the logistics digital transformation, some of which include: Greater productivity: these systems enable better tracking and monitoring of shipments in real time , and make it easier to make more efficient decisions to reduce delivery times. Improved transparency: thanks to the fact that they provide detailed, real-time information on the location of shipments and the status of their delivery, allowing both companies and customers to have a transparent view of the delivery process. Collaborative efficiency: These systems facilitate integration and collaboration with different stakeholders in the delivery process, such as suppliers and carriers. This provides greater flexibility and adaptability to logistics management. Cost reduction: the logistics digital transformation, by allowing an increase in productivity, improving transparency and enhancing collaboration, that is, the integration of other links in the chain has managed to reduce costs by improving efficiency in elements such as planning of delivery routes, while increasing their accuracy and reliability. 3.- Technologies with great potential. We are referring to custom software development services such as Big Data, Artificial Intelligence, Machine Learning, Natural Language Processing, Blockchain and Cloud Computing. Big Data: technology that allows massive data storage and analysis , which can improve efficiency and decision making also in the logistics industry. Artificial Intelligence – allowing machines to perform tasks that would normally require human intelligence, such as natural language processing and machine learning. Natural Language Processing: is a technology that allows machines to understand, interpret and process human language effectively. Let's imagine the use we could give to this new capacity of the machines within a WMS system. We will be able to directly tell our SGA system things like “calculate an ABC/XYZ of the thousand best-selling references comparing sales with profit margin and show it to me in a simple graph”, without having to use specific commands or a complicated user interface. Machine Learning: A type of artificial intelligence that allows machines to learn and improve themselves based on data or past experiences. This technology is applied in SGA systems, providing a series of advantages such as having the ability to analyze past demand to establish improvements in inventory disposition, or the SGA system itself, using data on the performance and efficiency of workers, identify areas for improvement or optimize space use based on location patterns. Blockchain: It is a technology with enormous potential for document management at an international level where it is expected to greatly reduce processing times. Cloud computing or data processing in the cloud: which allows companies to adjust their use of computing resources according to their needs, access permanently updated high-quality applications, such as a WMS system, without having to invest in expensive software since they pay only for the use they make of the contracted resources. 4.- Automation and robots. The automation of processes is one of the greatest revolutions in logistics digital transformation. Apart from their undeniable spectacularity and the image of modernization that they bring to a custom software development company, having robots in logistics presents other advantages such as greater speed and precision in repetitive and monotonous tasks , increased efficiency in processes and its corresponding reduction in waste, rework. and costs, and greater reliability and speed without errors in the processes.